TORONTO--(BUSINESS WIRE)--Filings of securities class actions in Canada declined to nine new cases
during 2012 from the record 15 new filings in 2011, and lower than the
average of 12 cases per year since 2008, according to NERA Economic
Consulting’s report released today, Trends in Canadian Securities
Class Actions: 2012 Update.

All of the new filings for 2012 were shareholder class actions, and in
contrast to previous years’ filings, none involved allegations of Ponzi
schemes, claims relating to the credit crisis, or claims against North
American-listed Chinese companies. The abatement of these recent trends
in filings was consistent with the experience in the US during 2012.
However, none of the nine cases filed in Canada appear to be related to
the surge in merger objection cases seen in the US over the last three
years.

Notably in 2012, Ernst & Young agreed to pay $117 million to settle
claims relating to its role as auditor of Chinese company Sino-Forest.
This partial settlement, if approved, would represent the largest
settlement in a Bill 198 case to date.

Active Cases

With nine new securities class actions filed and the resolution of five
cases during 2012, there were 51 active Canadian securities class
actions as of 31 December. This is nearly double the number of active
cases four years ago. NERA’s database now includes data for 100 Canadian
securities class actions filed since 1997.

“The growing number of active cases on the docket and the recent court
rulings suggest that we may see both more cases move to the leave
application and certification stages and possibly more settlements in
2013 than we saw in 2012,” said NERA Vice President Bradley Heys,
co-author of the report.

Canadian Securities Class Actions: Key Trends

Eight of the nine cases filed in 2012 involved issuers with securities
listed on the TSX.

Bill 198 cases made up the majority of filings in 2012, accounting for
eight of the nine cases filed—in line with previous years.

All of the cases filed in 2012 were filed in Ontario. Two cases
(SNC-Lavalin and Agnico-Eagle) were also filed in Québec. The claims
against Facebook and GLG Life Tech Corp were also filed in British
Columbia.

Six of the nine new class actions in 2012 also had parallel US
filings: Angico-Eagle, BP p.l.c., Facebook, GLG Life Tech, Kinross
Gold, and Nevsun Resources.

Two-thirds of the new cases filed in 2012 were brought against
companies in the mining or oil and gas sectors.

Continuing a the trend toward faster filing, the median time to file
from the end of the proposed class period to the date of filing for
cases filed in 2012 was approximately 3.1 months, and the average was
4.6 months.

Two cases were dismissed during 2012—cases brought against Western
Coal and CIBC.

55% of the 51 active cases are Bill 198 cases, representing more than
$19 billion in claimed damages.

US securities class actions filings were made against six
Canadian-domiciled companies in 2012, bringing the total number of
active US cases against Canadian-domiciled companies to 17.

Class Action Trends Series

NERA has been analyzing trends in securities class actions for more than
20 years. In addition to this Canada Trends report, the firm produces
two US Trends studies annually, as well as reports for the UK,
Australia, Japan, and Italy. This year-end study was authored by NERA
Economic Consulting Senior Vice President Mark L. Berenblut and Vice
President Bradley A. Heys.

NERA Economic Consulting (www.nera.com)
is a global firm of experts dedicated to applying economic, finance, and
quantitative principles to complex business and legal challenges. For
over half a century, NERA's economists have been creating strategies,
studies, reports, expert testimony, and policy recommendations for
government authorities and the world's leading law firms and
corporations. We bring academic rigor, objectivity, and real world
industry experience to bear on business and legal issues involving
competition, regulation, public policy, strategy, finance, and
litigation.

NERA's clients value our ability to apply and communicate
state-of-the-art approaches clearly and convincingly, our commitment to
deliver unbiased findings, and our reputation for quality and
independence. Our clients rely on the integrity and skills of our
unparalleled team of economists and other experts backed by the
resources and reliability of one of the world's largest economic
consultancies. With its main office in New York City, NERA serves
clients from more than 20 offices across North America, Europe, and Asia
Pacific.